Explain the underlying rationale for global trade and explain the difference between comparative and absolute advantage
STUDY QUESTIONS
- Explain the underlying rationale for global trade and explain the difference between comparative and absolute advantage.
- What are the essential factors for economic growth and increased development of global trade flows? Why are they so important in today’s global economy?
- A number of authors have observed that traditional, hierarchical organizations have changed in the current global economy. How have organizations changed? Why have they changed? What are the impacts of those changes likely to be?
- What private sector company epitomizes the concept of a global company with a well-managed global supply chain? Provide a rationale for your response.
- What special role do supply chains play in the globalization of organizations? What contributions do successful supply chains make to companies?
- What is meant by the current description of the global economy that “time and distance have been compressed”? Do you agree? What has been the impact of this compression?
- Why are customer service and its related strategy so important for companies operating global supply chains? Do you think that customer service is more important than lower cost to the customers?
- What is meant by the phrase “that supply chain security, especially on a global basis,” is a balancing act? Is the pendulum swinging in one direction or the other?
- Why are regional trade agreements among countries so important in the global economy? What is your evaluation of NAFTA and its impact on the participating countries?
- What is the role of ports for global commerce and why is that role important? Is our current port infrastructure sufficient? Why or why not?
Case Study
CASE 2-1
Red Fish, Blue Fish, LLP:
- Explain the advantages of a trade agreement and how it might impact a company like red fish-blue fish?
- What makes the demographics of the Asian countries attractive for future trade development?
- What challenges would red fish-blue fish likely experience?
Case Study
Case 2.2
Nike, Inc. Global Supply Chain Strategy
Case Questions:
- From a global perspective, what are some of the factors that will impact the extent to which Nike’s strategies will be successful?
- What will be some of the challenges to be expected by Nike when implementing its strategies in less-developed instead of developed economies?
- From a company and product branding perspective, what additional thoughts do you have that you think would be useful for Nike to consider?
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